InformationWeek

May 17, 1999
Capital Pours Into IT

Venture-capital investments in technology companies hit another all-time high last quarter, according to PricewaterhouseCoopers' latest Money Tree Survey, to be released this week.

Investment in IT grew by 63% from the first quarter of 1998, while investment in non-IT companies dropped 18%. IT companies received more funding in the first quarter than all other sectors combined. They garnered $3.6 billion, or 84%, of all first-quarter investments, which totaled $4.2 billion.

Investment in Internet companies tripled to $1.84 billion, from $501 million for the first quarter of 1998. In all, 236 companies received funding, compared with 114 in the same period last year.

The Internet sector is the fastest-growing sector ever tracked in the Money Tree survey, says James Atwell, managing partner of the venture capital practice for PricewaterhouseCoopers' global technology industry group. Other fast-growing sectors include software and information (up 72% to $1.45 billion) and communications (up 38% to $1.15 billion).

-- Jennifer Mateyaschuk